Ofwat predicts 40 retail licence applications this year
Ofwat said it expects as many as 40 applications from companies for retail supply licences in the coming financial year.
The regulator opened the application process for retailers to apply for water supply and sewerage licences (WSSLs). In its 2015/16 annual report, it said it expects about 30-40 applications for WSSLs in the coming year.
It insisted the market remains on track to open in April 2017.
Twelve companies have so far applied for licences since Ofwat opened the application process.
Thames Water Commercial Services is among those to have applied, but has since announced its intention to exit. Its business customers have been bought by Scottish retailer Castle Water, which has effectively nonupled in size as a result of the deal.
Castle Water had previously bought the business customer base of Portsmouth Water when the water-only company announced it would exit the market in January, and has subsequently applied for a licence.
Fellow Scottish retailers Business Stream, Cobalt Water and Clear Business Water have also submitted applications. Business Stream bought Southern Water’s business customer base when the large water and sewerage company announced its exit last month.
Northumbrian Water Business, Pennon Water Services, Severn Trent and United Utilities, Anglian Water Business, Sutton and East Surrey Water Services, Water 2 Business, and Kelda Retail – the business retail arm of Yorkshire Water – have also all applied for licences.
Other suppliers, including new entrant Everflow, have said they are considering buying into the English market when it opens, and Veolia UK has also said it wants to grow its retail activities in the UK water market.
-This article first appeared on Utility Week.
- NI Water accepts hosepipe ban interpretation was 'too broad' Northern Ireland Water has admitted that it exceeded its powers when attempting to prohibit a wide range of activities as... Read More >
- Price review 'will be a catalyst for innovation' The recently concluded price review will act as a catalyst for innovation in the water industry by sharpening the focus on... Read More >
- South West Water faces £2M Ofwat penalty South West Water faces a penalty of £2.09 million, while Severn Trent and Anglian Water are both set to benefit from... Read More >
- Scottish Water starts planning for the long term For SR21, Scottish Water is moving away from the traditional approach to business plans and developing a blueprint for the... Read More >
- Football teams and water companies: Closer than you think New season, new league, new challenges... Egremont Group's Owen Quinn and Alex Graham on the parallels between football... Read More >
- Abstract concept: How can water companies reduce abstraction? Despite concerns over supplies, water companies face pressure to reduce abstraction. As part of our Utility of the Future... Read More >
- The end of 'business as usual' in the water sector? James Connolly, head of partnerships at digital asset and works management company eviFile, assesses the message coming... Read More >
- Data Protection and Brexit - Is your organisation prepared? Guidance to help businesses and charities continue to comply with data protection law after the UK leaves the EU Read More >